The rules and procedures for managing business actions for employees or executives within a company are known as business ethics. To ensure that the company does not have an unfair advantage in the marketplace, business ethics training teaches managers how to handle sensitive information, interactions with clients and coworkers, and gifts from vendors. Standard rules on gifts, stock purchases, and travel restrictions are usually included in this training.
When a vendor has an unfair advantage for services, products, or employment with a company, it is called a conflict of interest. This is frequently based on friendships, relatives, or family members who own a business. Employees are taught how to recognize and resolve conflicts of interest during business ethics training.
Employees are taught how to react to specific business decisions that appear to be unethical in business ethics training. Often, this will necessitate the individual removing himself from a decision that could be considered unethical. Most businesses have a legal and ethics division that is responsible for assisting employees with ethical issues. The group advises the company on ethical issues.
Within business ethics training classes, political contributions are frequently discussed. Most governments have strict guidelines regarding what and how an individual can contribute to a political party. Restrictions on gifts, campaigning, and financial contributions are common examples. Because most governments regulate and tax businesses, it is critical to teach political ethics in the workplace.
For many production and manufacturing companies around the world, the environment is a business ethics consideration. Instructions on how to properly dispose of waste products are included in some business ethics training. Environmental ethics training is a term used to describe this type of ethics.
Financial and accounting ethics is a type of business ethics training that instructs employees on how to conduct financial transactions. Managers and executives who make financial decisions for an organization should attend this training. Insider trading rules, earnings management, creative accounting, and employee gift rules are just a few examples of topics covered in this type of training.
Insider trading is a prohibited practice that the Securities and Exchange Commission closely monitors in the United States. Insider trading is when a person trades stocks based on non-public information that has the potential to affect the stock’s price. Insider trading is a dishonest practice because the insider can profit handsomely from the information he has obtained. This is more common in executive positions that have access to information about an organization’s strategic direction.